Sirius XM Posts Record Third-Quarter Revenue, Subscriber Gains
Sirius XM Radio on Thursday reported record third-quarter revenue as it continued to sign up new subscribers.
The satellite radio company, led by outgoing CEO Mel Karmazin, managed to sign up a record 446,000 new users to end September with a company record of 23.6 million subscribers. It had added 334,000 in the year-ago period.
Said Karmazin: "Sirius XM delivered a very strong third quarter for our shareholders." Sirius XM on Thursday also confirmed its recently increased full-year subscriber growth guidance of around 1.8 million.
The company reported a third-quarter profit of $75 million after a $107 million debt extinguishment charge, compared with $104 in the year-ago period. Revenue rose 14 percent to a record $867 million.
Big Sirius XM shareholder Liberty Media, led by chairman John Malone and CEO Greg Maffei, is currently looking for a new CEO of the satellite radio giant. Karmazin is scheduled to leave his post early next year.
On a call with analysts after the earnings announcement, Karmazin attributed the record number of users to a booming rebound in car sales. He said that auto sales had been the been the best in four years, helping the company achieve 49.2 million satellite-enabled vehicles by the end of this year, which Karmazin said would grow to 59 million by the end of the year. "Following these trends, we will have 100 million satellite-enabled vehicles by 2017," he said.
On the analyst call, Sirius also said it was too soon to tell the impact of Hurricane Sandy on the company's financials, but said that it would likely effect car sales.